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BRK Tracking Stock


EricSchleien
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Hey Guys,

 

I wanted to do a little thought exercise. Buffett has made it very clear that Berkshire is worth more as a conglomerate than as broken up. What are your thoughts on Berkshire creating tracking stocks. This way there's no actual spinoffs and it ends up allowing Berkshire subs to get re-valued on the balance sheet. Also, it would allow more forms of currency for Berkshire and more flexibility for doing deals.

 

What are your guys thoughts?

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Not gonna happen.

 

Berkshire doesn't need more currency or flexibility to do deals. They have plenty of both. So why go through the trouble of having a bunch of publicly listed subs. Plus isn't one of BRK's acquisition selling points that if you sell to us you won't have to be public anymore?

 

Regarding valuation, it could very well be that once Warren decided that I'm gonna buy back a crapload of my own stock that he doesn't care if he gets a fair valuation or not. Once he makes up his mind on something he can be very ruthless at making money off of it.

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Not gonna happen.

 

Berkshire doesn't need more currency or flexibility to do deals. They have plenty of both. So why go through the trouble of having a bunch of publicly listed subs. Plus isn't one of BRK's acquisition selling points that if you sell to us you won't have to be public anymore?

 

Regarding valuation, it could very well be that once Warren decided that I'm gonna buy back a crapload of my own stock that he doesn't care if he gets a fair valuation or not. Once he makes up his mind on something he can be very ruthless at making money off of it.

 

 

1. I know they won't hence why I said thought exercise.

2. RE: "Plus isn't one of BRK's acquisition selling points that if you sell to us you won't have to be public anymore?" ...touche on that.

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